An Energy and Environmental Policy for the 21st Century

A message from Hank Gilbert

Fellow Texans:

In Texas, when talking about energy or the environment it is almost impossible to separate the two. The production of energy greatly impacts our environment and preserving our environment requires us to reduce greenhouse gas emissions and move toward renewable energy sources.

This is why I have combined energy issues and environmental issues in this policy. This policy statement is the kind of bold, common sense plan our state needs to put Texas on track to be the nation’s leader in both environmental protection and energy independence.

Under my plan, consumers will have new opportunities to help reduce their own carbon footprint through things like tax credits and on-bill loans to fit their homes with more energy efficient appliances. Utility companies and power providers will be challenged to aggressively meet the challenges of the future head on through innovation.

Governor Perry often claims that Texas is such a great state to do business in because we are essentially a state with weak regulations and weaker regulatory agencies. We must strengthen our environmental regulations and embolden our regulatory agencies while continuing to make Texas a great place to do business. This plan does that by proposing steps to attract new green industries to Texas and providing other incentives for Texas businesses to go green.

Finally, it will come as no surprise that there are those out there who will call any change from the status quo ‘too expensive’. The reality is that even in the short term, through new employment opportunities and the expansion of our economy that will result from this plan, the cost will be extremely low. In the long term, my plan is far cheaper than continuing on the current path. Further, my plan guarantees that future generations of Texans will be able to enjoy the natural wonders that grace this state.

Please join me in fighting for a better future that is possible with bold action and common sense planning.

Sincerely,

A Statewide Plan To Address Global Warming, Energy Conservation, & Renewable Energy

Hank proposes requiring the state draft and implement a statewide energy plan to address global warming, energy conservation and renewable energy. In 1991, the Joint Select Committee on Toxic Air Emissions and the Greenhouse Effect reported to the Texas Legislature that global warming posed many potential threats to Texas and recommended the establishment of an interagency panel to address the issue. To date, Texas has no such plan.

Streamlining Environmental Policy And Regulation, Conservation & Energy Regulation

Under current Texas law, several agencies—including the Texas Commission on Environmental Quality and the Texas Railroad Commission—are responsible for environmental regulation. When it comes to environmental and energy conservation, the Texas Commission on Environmental Quality, the Texas Water Development Board, and other agencies are all working separately on these goals.

Environmental regulation, energy and environmental conservation, and environmental policy initiatives must be consolidated in order to work effectively.

Hank proposes consolidating the functions of several agencies into the Texas Environmental Commission. Hank proposes consolidating all functions of the existing Texas Commission on Environmental Quality, all environmental regulatory functions of the Texas Railroad Commission, and all energy and natural resource conservation oversight in to the new Texas Environmental Commission.

The new Texas Environmental Commission would be headed by a director appointed by the Governor with the advice and consent of the Texas Senate and overseen by a nine member commission. Six members of the commission would be appointed by the governor with the requirement that two member be from business and industry, two be from the environmental community, and that two be members of the public. Of the remaining four members, the Lieutenant Governor would appoint two (one from business and industry and one from the environmental community) and the Speaker of the House would appoint the remaining two (both being public members). Of the members from the environmental community, one each of the governor’s and lieutenant governor’s appointees would be required to be scientists who practice environmental sciences in some capacity.

Under Hank’s plan, all environmental oversight presently resting with the Texas Railroad Commission relating to permits for all projects—including injection wells, uranium mining, and other drilling—would rest with the Texas Environmental Commission. The Railroad Commission would retain all other public safety oversight relating to these permits exclusive of environmental impact.

Under Hank’s plan, before the Railroad Commission votes to grant or deny a particular permit, The Texas Environmental Commission would conduct an investigation and make a recommendation to the Texas Railroad Commission concerning the environmental impact of the project. In order to insure that oil and natural gas production is not unduly interrupted, the Texas Environmental Commission would be bound by statute to act on permit applications transmitted by the Railroad Commission in a timely fashion, and there would be statutory allowances for expedited and emergency permits for oil and natural gas drilling.

Under current law, two separate agencies—the Railroad Commission and the Public Utility Commission of Texas—have oversight over utility rates charged to Texas consumers.

Hank proposes consolidating utility regulation under the Public Utility Commission of Texas. Under Hank’s plan, the Public Utility Commission of Texas would be responsible for rate oversight for natural gas, and water (as applicable under current state law).

Hank proposes an elected Public Utility Commissioner. Under Hank’s plan, the Public Utility Commissioner would be elected at large by Texas voters. He would chair a commission including four other members appointed by the Governor.

Environmental Regulatory Reform & Accountability

Consolidating responsibility for environmental regulation solves only one of the major issues surrounding the regulation of pollutants in Texas. In order to more fully address pollution and environmental conservation issues, bold, common sense regulatory reform is needed. Additionally, public input on permitting should not merely be a formality when it comes to environmental regulation. Public input must be taken seriously.

Hank proposes overhauling existing statutes and administrative regulations to hold polluters and regulated industries accountable to Texans. Hank proposes strengthening laws relating to surface and groundwater pollution; air pollution; soil pollution; and toxic exposure to Texans to reflect sound science and accepted environmental practices. Enforcement is the responsibility of the Commission as part of the effort to remove all political pressure from the enforcement process.

Hank proposes increasing fines and criminal penalties for polluters. Under Hank’s plan, fine levels for all types of pollution would be increased and criminal penalties—both against corporations and individuals—caught polluting would be strengthened. Under this plan, the new Texas Environmental Commission would also be regulated so that, following first offenses, there are limits on how far fines can be decreased in conjunction with agreed settlements or abatement agreements in order to deter bad corporate citizenry and pollution.

Hank proposes requiring that public input on permitting be given serious consideration. In many cases today, public input on environmental permits is a mere formality. Regardless of the environmental considerations and outcry from local citizens, permits are routinely granted. Under Hank’s plan, hearing examiners and the Texas Environmental Commission would be required to give serious weight to public input. Too, public input requirements for all permits would be strengthened and the bar that those opposed to potential environmental hazards in the areas where they will be located will be lowered to allow citizens greater ability to challenge permits in contested case hearings.

Utilizing & Increasing Our Renewable Energy Capacity

Hank proposes increasing Texas’ Renewable Portfolio Standard to mandate that energy providers in Texas collectively generate 20 percent of Texas power from renewable energy by 2020. Under current law, Texas has a target of 10,000 MW of renewable energy capacity by 2025. That is roughly 12 percent of the 78,000 MW of generation capacity overseen by ERCOT in Texas (which represents 85 percent of the Texas power load and 75 percent of the state’s landmass). Hank believes we can do better. He proposes requiring that Texas power companies generate 20 percent of the electricity used in Texas from renewable sources by 2020 and 25 percent by 2025.

This is at a bare minimum. As more and more demands are placed on gas and coal supplies, producers will be forced to convert to renewables. This plan accelerates that process without substantial cost increases and allows us to gradually prepare for the future.

Hank proposes incentives for increasing wind, solar, and biomass capacity. Under Hank’s plan, energy providers who invest in biomass, wind, and solar energy would receive tax credits for developing and constructing renewable energy infrastructure. Businesses engaged solely in manufacturing, selling, and installing solar or wind energy devices would also be exempted from the state franchise tax.

Hank proposes establishing a pilot program requiring power companies to enter into 10-15 year contracts with renewable energy developers. This will aide the development of renewable energy in Texas.

Hank does not favor nuclear power. Hank does not favor nuclear power as an alternative form of energy in Texas until there are better and safer long-term waste disposal methods for nuclear waste. There are a number of areas in which nuclear technology is advancing and, of course, should better alternatives surface they will be considered.

Reducing Our Energy Demands Through Conservation & Efficiency

Reducing energy demands through conservation and efficiency are a major piece of the puzzle when it comes to improving Texas’ environment. Why? Because the less energy Texas needs, the more Texans can rely on renewable sources of energy and less on dirty ones.

Hank proposes raising energy efficiency standards for residential and commercial construction. In 2001, the Texas Legislature adopted legislation requiring that the state adopt the energy-efficiency standards of the International Code Council’s International Residential Code. Texas is still using the 2001 ICC standards. Hank proposes updating the standards to current standards and legislation which will automatically update these standards when the ICC updates its standards. This will not only save energy, but it will save Texas’ residential and commercial electricity consumers more money.

Hank proposes increasing the miles-per-gallon of the state’s vehicle fleet through the purchase of hybrid vehicles. Under Hank’s proposal, as state vehicles are replaced, they must (when possible) be replaced with new hybrids or alternative fuel vehicles. At least 50 percent of vehicles in the state fleet must be hybrids by 2020.

Hank proposes mandating that electric utilities reduce electricity consumption by 10 percent by 2020. Under Hank’s plan, electric utilities would be required to offer customers rebates and credits for weatherization activities and the replacement of inefficient appliances and heating and cooling systems with those that are more energy efficient. In addition, Hank proposes that utility companies in Texas be required to offer on-bill financing to help small businesses and homeowners recoup the large investment associated with energy efficiency projects and appliances. Loan payments would be consolidated into a consumer’s monthly utility bills.

Hank proposes requiring the establishment of state energy standards for various appliances. Although many appliances are covered by federal energy efficiency standards, there are some (such as bottle-type water dispensers, pool pumps, portable electric spas, and commercial hot food cabinets) which are not. Hank proposes establishing standards for these and other appliances.

Hank proposes property tax incentives for homeowners who install solar panels on their homes, and eliminating the sales tax on the purchase and instillation of solar panels. Under Hank’s plan, legislation would also be required to allow any home or business generating solar power to be connected to the electrical grid and sell excess power to a utility at 75% of retail for the time of day.  Hank further proposes that the Texas Environmental Commission will set up a buyers’ cooperative to combine the purchasing power of large numbers of homeowners to obtain the best pricing possible for the systems on a monthly basis. Installation will be the responsibility of the homeowner.

Hank proposes giving businesses a franchise tax deduction for the cost of solar and wind energy systems designed to power their businesses.

Hank proposes giving homeowners and businesses property tax exemptions for the appraised value of solar, wind, or biomass energy systems.

Creating Green Jobs & Greening The Texas Economy

Hank proposes retooling the Texas Enterprise Fund to focus on bringing green jobs to Texas. Under Hank’s plan, 50 percent of the current balance of the Texas Enterprise Fund and all revenue appropriated into the fund for the next five biennia would be set aside for creating green jobs and attracting green industry and green energy to Texas.

Hank proposes retooling the Texas Emerging Technology Fund to focus on helping develop new green energy and environmentally sound technologies. Under Hank’s plan, 50 percent of the current balance of the Texas Emerging Technology Fund and all revenue appropriated into the fund for the next five biennia would be set aside for developing new green energy and environmentally sound technologies and creating partnerships with existing businesses that will aid them in expanding their biofuel refining and distribution capabilities.

Using The Enterprise & Emerging Technology Funds To Advance Biofuel Production. A key component of Hank’s strategy is using state funds, in conjunction with venture capital companies based in Texas, to secure early and mezzanine stakes in biofuel companies. The goal is not only to foster the development of new industries and the companies that will lead them but to create wealth for state pension funds to lower the amount of investment that will be required from taxpayers in the future.

No one technology will completely wean us off foreign oil. However, many of them combined will be the key to recreating an energy independent Texas. With independence comes the ability to grow our economy far faster with higher wages and lower the tax burden for all Texans.

Cleaner Air

Hank proposes strengthening statutory requirements to reduce toxic and harmful emissions from existing industrial plants and power plants.

Hank proposes requiring all existing coal power plants to adopt cleaner technologies by 2017. Under Hank’s plan, existing coal power plants in Texas would be required, by 2017, to begin utilizing technologies to reduce emissions including through techniques such as carbon capture and sequestration.

Hank proposes adopting strict standards for mercury and other pollutants from existing power plants and factories. Under Hank’s plan, the state would adopt legislation requiring that maximum available control technologies (MACT) be used to reduce or eliminate mercury, carbon dioxide, and nitrous oxide. These pollutants poison our lakes and waterways, endangering the wildlife that Texans have enjoyed for generations.

Hank proposes a moratorium on permits for new coal power plants unless their emissions are captured and stored. Coal power plants produce more pollution than any other type of power plant in Texas. Hank proposes a permitting moratorium because Texas must look toward retooling existing coal plants to be cleaner and more efficient, producing more power with less pollution.

Hank proposes requiring cement production plants to reduce mercury emissions by 80 percent by 2014. In addition, all kilns built before 1980 would be required to meet or exceed New Source Performance Standards by 2014.

Hank proposes a cap on the percentage increase of known air pollutants in the immediate vicinity of drilling operations or pipeline facilities as compared to the ambient air standards of the county of those operations. Some cities and towns in Texas are literally choking to death on the emissions from production activities in their immediate area.  This cap will require companies to employ emissions-capturing technology or risk fine or closure.

Protecting Our Water

Hank proposes uniting groundwater protection within the Texas Environmental Commission. Under Hank’s plan, dividing the regulation of pollution and monitoring of groundwater would be united under the new Texas Environmental Commission.

Hank proposes legislation requiring that groundwater conservation districts include multi-county areas. Our state’s aquifers do not conform to the boundaries of counties; for single counties to create groundwater conservation districts to preserve and protect our groundwater—while admirable—isn’t good public policy. Under my plan, at least three counties would be required to work in concert with each other to create groundwater conservation districts.

Strict Standards For Injection Wells

Hank proposes strict standards for underground disposal wells (commonly called injection wells). Under Hank’s plan, regular testing and public reporting of soil and groundwater near injection wells would be required, strict limits would be set on where injection wells can be placed, and strict rules would be established for surface facilities associated with injection wells.

Hank proposes mandatory use of purification technology for drilling waste to be disposed of through injection wells by 2020. There are many types of technology available which would allow producers to purify drilling waste water or brine to remove toxic chemicals prior to injecting it into disposal wells. Under Hank’s plan, use of this technology would be mandatory by 2020 and producers who adopt the technology early would be eligible for tax credits. Under Hank’s plan, all water being injected back into the ground would be subject to mandatory testing to insure it is free of pollutants and toxins prior to injection.

Surface Owner Protection

Hank proposes a Surface Owner Protection Act. Under Hank’s plan, a Surface Owner Protection Act would protect all landowners, especially those who do not own their own mineral rights, from damage or unfair practices by companies seeking to drill production or disposal wells, or install pipelines, on or under their land.  The law would require advance notice prior to entry upon the land, mandatory setbacks from residences and barns, and a codification of the accommodation doctrine to provide for damages sustained for loss of agricultural production and income, lost land value, lost use of and lost access to the surface owner’s land, lost value of improvements, and loss of value associate with the pollution of surface or groundwater

Preserving Texas’ Parks

Hank proposes a constitutional amendment requiring all revenues generated by the Sporting Goods Sales Tax as well as other user fees and taxes presently dedicated to the park system to be so allocated.

Hank proposes $150 million be allotted for the acquisition and development of new state parks and for the addition of land to existing state parks.

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